Exhibit 99

News Release

Date: July 18, 2006	Phone Number: 805/473-6803
Contact: James G. Stathos	NASDAQ Symbol: MDST
Title: Executive Vice President and Chief Financial Officer	Web site: www.midstatebank.com

The financial information presented in this news release represents preliminary financial results.

Mid-State Bancshares Reports Earnings of $0.39 Per Share for Second Quarter of 2006

ARROYO GRANDE, CA - Mid-State Bancshares (the Company) [NASDAQ: MDST], the holding company for Mid-State Bank & Trust (the Bank), reported diluted earnings of $0.39 per share for the second quarter of 2006 on net income of $8.9 million.  Results in the quarter were impacted by a $2.4 million increase in non-interest expense reflecting, primarily, increases in staffing for growth and compliance, benefit cost increases and adoption of Statement of Financial Accounting Standards (SFAS) No. 123R, “Share-Based Payment”, which changes the method of accounting for costs of stock options and other equity compensation.  The adoption of the new accounting statement alone reduced earnings by approximately $408,000 after tax, or $0.02 per share. Net income for the second quarter of 2005 was $9.5 million, or $0.41 per share.

For the first six months of 2006, net income was $17.7 million, or $0.78 per share, compared to $18.6 million and $0.79 per share for the first six months of 2005.  Adoption of the new statement reduced 2006 earnings by approximately $805,000 for the first six months, or $0.04 per share.

In the wake of increases in short term interest rates throughout 2005 and early 2006, the Company’s net interest margin improved to 5.61% (6.01% on a taxable equivalent basis) for the first half of 2006, up from the 2005 period’s level of 5.30% (5.72% on a taxable equivalent basis).  “The Company’s net interest margin, which had generally been increasing in the rising rate environment of 2005, has flattened out in 2006 in the wake of intense deposit competition and has meant relatively flat net interest income for the Company in recent quarters,”   said James G. Stathos, executive vice president and chief financial officer.  “Average loans in the second quarter of 2006 were 2.7% ahead of the first quarter of this year but deposits decreased.  Securing deposits at a reasonable cost to fund loan growth is an ongoing challenge.  The Company has promotions planned during the balance of the year to bolster deposit growth.”

“Despite current challenges, earnings and key financial ratios were slightly improved in the second quarter of 2006 compared to the first quarter of this year,” noted James W. Lokey, president and chief executive officer.  “Net income increased to just over $8.9 million from slightly less than $8.8 million in the prior quarter.  Additionally, the Company’s Return on Assets improved to 1.52% from 1.50% in the prior quarter and the Company’s Return on Equity increased to 13.17% from 12.77% in the first quarter.  We are also pleased to be opening our new Westlake Village office in the Ventura County market very soon where we believe business opportunities are significant.”

The loan portfolio reached $1.56 billion at June 30, 2006, compared to $1.49 billion one year ago.  The Company saw growth in its loan portfolio in both the residential and non-residential real estate sectors.  Real estate secured loans, excluding construction and land development loans and home equity credit lines, total approximately $846 million or 54% of the loan portfolio.  Management believes that with increased interest rates and more intense pricing pressure affecting competition, the growth rates enjoyed in this sector of the loan portfolio are likely to slow.  Therefore, additional emphasis in 2006 is being placed on growing the Company’s commercial and industrial loans.

Non-performing asset levels are negligible, having fallen to $261,000 at period-end from $5.2 million one year earlier.  The Company’s allowances for losses to loans was 0.9% of total gross loans compared to 1.0% one year earlier.  Management believes the Company’s allowances are appropriate to cover the losses inherent in the loan portfolio at the current time.

Total assets of the Company decreased 1.0% to $2.33 billion at quarter-end, down from $2.35 billion one year earlier.  Deposits decreased 1.9% to $1.99 billion at quarter-end, down from $2.03 billion one year earlier.  Demand deposits decreased to $521.5 million, down from $561.4 million one year earlier.  Time deposits increased to $466.3 million from $415.2 million.  Other interest bearing deposit categories including NOW, money market and savings declined by $50.7 million compared to the year earlier period.

Total non-interest income for the quarter increased to $6.0 million from $5.4 million in the comparable 2005 period.  For the full 6 months, non-interest income was $10.9 million in 2006 compared to $10.8 million in 2005.  The 2005 results were bolstered by a $330,000 gain on a life insurance policy in the first quarter of that year which did not recur in 2006.  2006 results benefited from a $325,000 gain in the second quarter representing the Company’s proportional interest in a sold merchant processing business in which it had an interest.  The Company also benefited from increases in service charges and fees, primarily the result of increased NSF fees, in the 2006 periods compared to the like 2005 periods.  These were partially offset by declines in net gains on sale of securities and sale of loans held for sale.

Total non-interest expense was $21.6 million in the second quarter of 2006 compared to $19.2 million in the like 2005 period.  Year-to-date, non-interest expense increased from $37.5 million in 2005 to $42.6 million this year.  Approximately $473,000 of the increase for the quarter and $913,000 of the year-to-date increase relates to the aforementioned expense of adopting SFAS No. 123R.  An additional $1.2 million of the increase across the two quarters, and $1.3 million across the two six month periods, represents higher salary expense relating to a combination of hiring additional personnel to staff up for the soon to be opened Westlake Village branch location, increasing staff for compliance purposes (especially as it relates to Bank Secrecy Act and U.S.A. Patriot Act provisions) and regular salary increases across the Company.  Benefit costs also increased $299,000 and $811,000 in comparing the three month and six month periods ending June 30, respectively, primarily for increased group insurance costs and incentive programs.  Professional services increased $103,000 across the comparable quarters and between the two six month periods, were up $882,000, primarily for increased consulting services and accounting services.  The balance of the increases across the time periods consisted of a number of smaller increases over several line items.

2

On June 15, 2005 the Board authorized the repurchase of up to five percent of its outstanding shares, or up to 1,141,373 additional shares of the Company’s common stock.  This authorization does not have an expiration date.  The Company repurchased 308,251 and 524,082 shares of its common stock for the three month and six month periods ended June 30, 2006, respectively, at an average price of $27.52 and $27.92 per share, respectively.  As of June 30, 2006, the Company is continuing the program and can repurchase up to 292,593 additional shares under the current authorization.  For the three months and six months ended June 30, 2005, 315,787 and 509,557 shares were repurchased, respectively, at an average price of $26.06 and $26.52, respectively.

In other matters concerning capital, the Board of Directors approved a quarterly cash dividend of $0.18 per share in the second quarter of 2006, identical to its first quarter 2006 level.  The rate was $0.16 per share in each of the like 2005 periods.

Mid-State Bancshares is a $2.3 billion holding company for Mid-State Bank & Trust, an independent, community bank serving California’s San Luis Obispo, Santa Barbara, and Ventura Counties.  Since opening its doors in 1961, the Bank has grown to 40 offices serving more than 100,000 households.

This Press Release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act.  All of the statements contained in the Press Release, other than statements of historical fact, should be considered forward-looking statements, including, but not limited to, those concerning (i) the Company’s strategies, objectives and plans for expansion of its operations, products and services, and growth of its portfolio of loans, investments and deposits, (ii) the Company’s beliefs and expectations regarding actions that may be taken by regulatory authorities having oversight of its operation and interest rates, (iii) the Company’s beliefs as to the adequacy of its existing and anticipated allowances for loan and real estate losses, (iv) the Company’s beliefs and expectations concerning future operating results, (v) the growth of its loan portfolio and its net interest margin and (vi) the strength of the economy in its service area.  Although the Company believes the expectations reflected in those forward-looking statements are reasonable, it can give no assurance that those expectations will prove to have been correct.  All subsequent written and oral forward-looking statements by or attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this qualification.  Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are not intended to give any assurance as to future results.  The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Please See Pertinent Financial Data Attached.

###

3

Consolidated Financial Data  —  Mid-State Bancshares

(Unaudited)	Quarter Ended				Year-to-Date
(In thousands)	June 30, 2006		June 30, 2005		June 30, 2006		June 30, 2005
Interest Income (not taxable equivalent)	$	36,030	$	31,654	$	70,765	$	61,136
Interest Expense	6,578		3,694		11,844		6,407
Net Interest Income	29,452		27,960		58,921		54,729
(Benefit)/Provision for Loan Losses	—		—		—		—
Net Interest Income after provision for loan losses	29,452		27,960		58,921		54,729
Non-interest income	5,959		5,378		10,939		10,773
Non-interest expense	21,589		19,211		42,551		37,546
Income before income taxes	13,822		14,127		27,309		27,956
Provision for income taxes	4,899		4,615		9,612		9,354
Net Income	$	8,923	$	9,512	$	17,697	$	18,602

	Quarter Ended						Year-to-Date
(In thousands, except per share data)	June 30, 2006			June 30, 2005			June 30, 2006			June 30, 2005
Per share:
Net Income - basic	$	0.40		$	0.42		$	0.79		$	0.81
Net Income - diluted	$	0.39		$	0.41		$	0.78		$	0.79
Weighted average shares used in Basic E.P.S. calculation	22,246			22,884			22,344			22,951
Weighted average shares used in Diluted E.P.S. calculation	22,706			23,381			22,828			23,468
Cash dividends	$	0.18		$	0.16		$	0.36		$	0.32
Book value at period-end							$	12.08		$	12.04
Tangible book value at period end							$	9.64		$	9.63
Ending Shares							22,121			22,810
Financial Ratios
Return on assets	1.52		%	1.63		%	1.51		%	1.61		%
Return on tangible assets	1.56		%	1.67		%	1.55		%	1.65		%
Return on equity	13.17		%	13.87		%	12.97		%	13.60		%
Return on tangible equity	16.44		%	17.34		%	16.14		%	17.00		%
Net interest margin (not taxable equivalent)	5.61		%	5.37		%	5.61		%	5.30		%
Net interest margin (taxable equivalent yield)	6.00		%	5.79		%	6.01		%	5.72		%
Net loan (recoveries) losses to avg. loans	0.02		%	0.06		%	0.01		%	0.06		%
Efficiency ratio	61.0		%	57.6		%	60.9		%	57.3		%
Period Averages
Total Assets	$	2,347,097		$	2,339,887		$	2,361,014		$	2,323,193
Total Tangible Assets	2,293,114			2,284,853			2,306,924			2,267,989
Total Loans (includes loans held for sale)	1,560,602			1,460,506			1,540,413			1,447,401
Total Earning Assets	2,107,590			2,088,566			2,118,473			2,084,110
Total Deposits	1,998,463			2,022,691			2,014,818			2,007,110
Common Equity	271,704			275,100			275,179			275,842
Common Tangible Equity	217,721			220,067			221,089			220,638
Balance Sheet - At Period-End
Cash and due from banks							$	97,563		$	116,891
Investments and Fed Funds Sold							522,091			606,462
Loans held for sale							8,933			10,871
Loans, net of deferred fees, before allowance for loan losses							1,564,169			1,490,366
Allowance for Loan Losses							(11,855		)	(13,403		)
Goodwill and core deposit intangibles							53,887			54,885
Other assets							92,872			85,024
Total Assets							$	2,327,660		$	2,351,096
Non-interest bearing deposits							$	521,469		$	561,435
Interest bearing deposits							1,464,783			1,464,293
Other borrowings							49,726			25,331
Allowance for losses - unfunded commitments							1,880			1,759
Other liabilities							22,693			23,623
Shareholders’ equity							267,109			274,655
Total Liabilities and Shareholders’ Equity							$	2,327,660		$	2,351,096
Asset Quality & Capital - At Period-End
Non-accrual loans							$	261		$	5,152
Loans past due 90 days or more							—			—
Other real estate owned							—			—
Total non performing assets							$	261		$	5,152
Allowance for losses to loans, gross (1)							0.9		%	1.0		%
Non-accrual loans to total loans, gross							0.0		%	0.3		%
Non performing assets to total assets							0.0		%	0.2		%
Allowance for losses to non performing loans (1)							5262.5		%	294.3		%
Equity to average assets (leverage ratio)							9.4		%	9.4		%
Tier One capital to risk-adjusted assets							11.2		%	11.6		%
Total capital to risk-adjusted assets							11.9		%	12.5		%

(1)Includes allowance for loan losses and allowance for losses - unfunded commitments

Consolidated Financial Data  —  Mid-State Bancshares

(Unaudited)	Quarter Ended
(In thousands, except per share data)	June 30, 2006			Mar. 31, 2006			Dec. 31, 2005			Sept. 30, 2005			June 30, 2005
Interest Income (not taxable equivalent)	$	36,030		$	34,735		$	34,267		$	32,923		$	31,654
Interest Expense	6,578			5,266			4,772			4,324			3,694
Net Interest Income	29,452			29,469			29,495			28,599			27,960
(Benefit)/Provision for Loan Losses	—			—			—			—			—
Net Interest Income after provision for loan losses	29,452			29,469			29,495			28,599			27,960
Non-interest income	5,959			4,980			5,397			5,271			5,378
Non-interest expense	21,589			20,962			20,655			19,473			19,211
Income before income taxes	13,822			13,487			14,237			14,397			14,127
Provision for income taxes	4,899			4,713			4,840			4,905			4,615
Net Income	$	8,923		$	8,774		$	9,397		$	9,492		$	9,512
Per share:
Net Income - basic	$	0.40		$	0.39		$	0.42		$	0.42		$	0.42
Net Income - diluted	$	0.39		$	0.38		$	0.41		$	0.41		$	0.41
Weighted average shares used in Basic E.P.S. calculation	22,246			22,444			22,546			22,709			22,884
Weighted average shares used in Diluted E.P.S. calculation	22,706			22,951			23,038			23,231			23,381
Cash dividends	$	0.18		$	0.18		$	0.18		$	0.16		$	0.16
Book value at period-end	$	12.08		$	12.12		$	12.10		$	12.01		$	12.04
Tangible book value at period end	$	9.64		$	9.71		$	9.69		$	9.60		$	9.63
Ending Shares	22,121			22,378			22,520			22,623			22,810
Financial Ratios
Return on assets	1.52		%	1.50		%	1.54		%	1.57		%	1.63		%
Return on tangible assets	1.56		%	1.53		%	1.58		%	1.60		%	1.67		%
Return on equity	13.17		%	12.77		%	13.41		%	13.65		%	13.87		%
Return on tangible equity	16.44		%	15.85		%	16.67		%	17.03		%	17.34		%
Net interest margin (not taxable equivalent)	5.61		%	5.61		%	5.47		%	5.22		%	5.37		%
Net interest margin (taxable equivalent yield)	6.00		%	6.02		%	5.88		%	5.63		%	5.79		%
Net loan losses (recoveries) to average loans	0.02		%	(0.01		%)	(0.10		%)	0.49		%	0.06		%
Efficiency ratio	61.0		%	60.8		%	59.2		%	57.5		%	57.6		%
Period Averages
Total Assets	$	2,347,097		$	2,375,086		$	2,421,219		$	2,401,998		$	2,339,887
Total Tangible Assets	2,293,114			2,320,887			2,366,807			2,347,308			2,284,853
Total Loans (includes loans held for sale)	1,560,602			1,520,000			1,478,550			1,517,357			1,460,506
Total Earning Assets	2,107,590			2,129,477			2,138,788			2,172,310			2,088,566
Total Deposits	1,998,463			2,031,355			2,099,061			2,082,464			2,022,691
Common Equity	271,704			278,693			278,092			275,854			275,100
Common Tangible Equity	217,721			224,494			223,679			221,164			220,067
Balance Sheet - At Period-End
Cash and due from banks	$	97,563		$	113,461		$	109,791		$	130,602		$	116,891
Investments and Fed Funds Sold	522,091			590,191			619,332			649,815			606,462
Loans held for sale	8,933			8,683			10,176			10,391			10,871
Loans, net of deferred fees, before allowance for loan losses	1,564,169			1,546,323			1,519,014			1,497,704			1,490,366
Allowance for Loan Losses	(11,855		)	(11,931		)	(11,896		)	(11,532		)	(13,403		)
Goodwill and other intangibles (excl OMSR’s)	53,887			54,105			54,323			54,541			54,885
Other assets (incl OMSR’s)	92,872			92,609			90,759			90,852			85,024
Total Assets	$	2,327,660		$	2,393,441		$	2,391,499		$	2,422,373		$	2,351,096
Non-interest bearing deposits	$	521,469		$	535,538		$	567,782		$	589,601		$	561,435
Interest bearing deposits	1,464,783			1,515,374			1,501,824			1,516,361			1,464,293
Other borrowings	49,726			47,159			25,903			23,680			25,331
Allowance for losses - unfunded commitments	1,880			1,696			1,761			1,839			1,759
Other liabilities	22,693			22,366			21,667			19,206			23,623
Shareholders’ equity	267,109			271,308			272,562			271,686			274,655
Total Liabilities and Shareholders’ equity	$	2,327,660		$	2,393,441		$	2,391,499		$	2,422,373		$	2,351,096
Asset Quality & Capital - At Period-End
Non-accrual loans	$	261		$	1,701		$	2,463		$	8,323		$	5,152
Loans past due 90 days or more	—			—			—			—			—
Other real estate owned	—			—			—			—			—
Total non performing assets	$	261		$	1,701		$	2,463		$	8,323		$	5,152
Allowance for losses to loans, gross (1)	0.9		%	0.9		%	0.9		%	0.9		%	1.0		%
Non-accrual loans to total loans, gross	0.0		%	0.1		%	0.2		%	0.6		%	0.3		%
Non performing assets to total assets	0.0		%	0.1		%	0.1		%	0.3		%	0.2		%
Allowance for losses to non performing loans (1)	5262.5		%	801.1		%	554.5		%	160.7		%	294.3		%
Equity to average assets (leverage ratio)	9.4		%	9.4		%	9.2		%	9.2		%	9.4		%
Tier One capital to risk-adjusted assets	11.2		%	11.4		%	11.6		%	11.5		%	11.6		%
Total capital to risk-adjusted assets	11.9		%	12.2		%	12.3		%	12.2		%	12.5		%

(1)Includes allowance for loan losses and allowance for losses - unfunded commitments